1152
THE NEW ZEALAND GAZETTE.
[No. 31

CONSENT TO CONVERSION.

7. The consent of the holder of the existing securities to the conversion thereof in accordance with this Order shall, if given, be signified in writing not later than the date of conversion, and when given shall be irrevocable.

NEW SECURITIES.

8. The aggregate amount of principal secured by the new securities to be issued in conversion of existing securities to which this Order applies, together with interest thereon computed at the rate of four and one-quarter per centum per annum, shall be repaid by equal half-yearly instalments over a period of twenty-six and one-half years, the first half-yearly instalment to fall due and be paid on the first day of March, one thousand nine hundred and thirty-six, and subsequent half-yearly instalments to fall due and be paid on every first day of September and first day of March thereafter, the last half-yearly instalment to fall due and be paid on the first day of March, one thousand nine hundred and sixty-two.

9. (1) New securities for the amount of each half-yearly instalment referred to in the preceding clause shall be issued in the form of debentures in the form numbered (2) in the Second Schedule hereto.
   (2) All new debentures shall be numbered consecutively, and as between the holders thereof shall rank equally.
   (3) Every new debenture shall state on its face the fact that the holder has no claim in respect thereof upon the Government or public revenues of New Zealand.
   (4) Every new debenture shall be signed by the Chairman, countersigned by the Treasurer or some other officer appointed by the local authority for the purpose, and sealed with the common seal of the local authority.

PREMIUMS.

10. Subject to the provisions of paragraph (a) of clause 13 hereof the holder of the existing securities shall be entitled to receive new securities for the same aggregate amount of principal as is secured by the existing securities, and, in addition thereto, shall be entitled to receive a premium, computed in accordance with the Third Schedule hereto, on the amount of principal secured by all the existing securities to which this Order applies.

11. The premium to which the holder of the existing securities is entitled under the last preceding clause shall be satisfied, in accordance with the provisions of paragraphs (b) and (c) of clause 13 hereof, partly by the transfer to such holder of debentures held by the Commissioners of the existing sinking fund of the loan specified in the First Schedule hereto and partly by payment in cash by such Commissioners.

PLACE FOR PAYMENT OF PRINCIPAL AND INTEREST.

12. The principal and interest in respect of new securities shall be payable in New Zealand.

APPLICATION OF EXISTING SINKING FUND.

13. The existing sinking fund of the loan referred to in the First Schedule hereto shall be applied by the Commissioners thereof, so far as it will extend, in or towards making the following payments, in the following order of priority, namely:—
    (a) Firstly, in transferring as at the date of conversion to the holder of the existing securities, such of the debentures, to the nominal value of twelve thousand pounds, as are held by such Commissioners and approved for the purpose by such holder. The debentures so transferred shall be accepted by the holder of the existing securities in satisfaction to the extent of twelve thousand pounds of the principal secured by the existing securities;
    (b) Secondly, in transferring, as at the date of conversion, to the holder of the existing securities, in satisfaction pro tanto of the premium to which such holder is entitled pursuant to the foregoing provisions of this Order, such of the debentures or other securities as are held by the Commissioners and are approved for the purpose by such holder. The debentures or other securities so transferred shall be accepted at their nominal value;
    (c) Thirdly, in payment in cash of any premiums to which the holder is entitled on the conversion of the existing securities and not satisfied by the transfer of debentures or other securities pursuant to the last preceding paragraph (b) hereof;
    (d) Fourthly, in payment, in accordance with the directions of the local authority, of the costs and charges (not exceeding in the aggregate three hundred pounds) of and incidental to the conversion of the existing securities; and
    (e) Fifthly, in transferring the balance to the Commissioners of the depreciation fund established by the local authority pursuant to the provisions of the Electric-power Boards Amendment Act, 1927, to be held by such Depreciation Fund Commissioners as part of that depreciation fund.

SURRENDER OF CONVERTED SECURITIES, AND PAYMENT OF INTEREST THEREON.

14. The holder of the existing securities converted into new securities shall surrender the existing securities in Wellington in exchange for the new securities and shall be entitled to receive on the date of conversion interest on the existing securities for the period ending on the date of conversion.

PAYMENT OF COSTS OF CONVERSION.

15. All costs, charges, and expenses incidental to the conversion shall be borne and paid by the local authority.

ADDITIONAL SECURITY.

16. (1) In the event of the local authority having heretofore executed in favour of the holder of any existing securities issued in respect of the loan referred to in the First Schedule hereto any deed of mortgage or charge over any of its property or revenues, the local authority shall on the conversion of such loan, if so required by such holder, execute in his favour by way of additional security for the new securities in respect of such loan a new deed of mortgage or charge corresponding as nearly as circumstances will permit to the terms of the existing deed.
    (2) On the execution of any new deed pursuant to the last preceding subclause the existing deed shall be surrendered to the local authority and be deemed to be cancelled.